Priority Questions
1. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government if he will detail the criteria used to set out the list of estates eligible for exemptions under the local property tax; and if he will make a statement on the matter. [20595/13]
Amharc ar fhreagraAn exemption from the local property tax applies to developments listed in the schedule to the Finance (Local Property Tax) Regulations 2013. The list of unfinished housing developments eligible for the exemption was compiled by local authorities utilising the categorisation employed for the purposes of the national housing survey of 2012. The survey was carried out over the course of the summer of 2012 by the Department in conjunction with local authorities and the Housing Agency.
The categorisation methodology for the survey was different from that used in 2011 which provided the basis for the waiver from the household charge. This earlier categorisation related largely to the level of on-site activity at the time the 2011 survey was carried out and had less to do with the physical character of a development. The 2012 survey was based purely and objectively on the actual state of completion of a development, and established there were 1,700 unfinished developments, with 1,100 of them deemed to be in a seriously problematic condition. This represents a 37% reduction in unfinished developments since 2010. Only developments deemed by local authorities to be in a seriously problematic condition, regardless of whether a developer was on or off site, were included in the local property tax regulations. For the purposes of preparing the final list of developments to which the exemption from the local property tax would apply, local authorities were asked by the Department to confirm or update the then existing list of estates in a seriously problematic condition, as appropriate.
Will the Minister of State confirm whether it is correct to state that where local authorities carried out the instructions and inspections, they were instructed to do so by the Department and to take into account certain criteria when devising the lists? Obviously this was the case because in my county, 26 estates were exempt from the household charge but only one estate was exempt when it came to the local property tax. Does the Minister of State have faith in the standards and requirements demanded by local authorities on a regular basis before taking charge of local authority estates? Does she support the mechanisms and procedures involved in the process? If she does, it totally flies in the face of the policy she and the Department employed lately when devising the secondary list of exemptions. Does she also believe it was totally unfair and unjust for the Department not to employ any appeals mechanism once the list was completed?
Does the Minister of State believe it was opportunistic, to say the least, of her colleague and senior Minister to give a candidate in the Meath East by-election the impression of the distinct possibility that any representations might result in an appeal, and by association give the impression in some way or another that certain estates in the county might see favour in being taken from the list? This does not take from the point I made in the first instance. Any candidate, whether a representative of a local authority or otherwise, was quite entitled to make an appeal. The Department brought out a system which was unjust and unfair and did not allow for appeals. To return to the kernel of the point I am making, if the Minister of State agrees with the procedures and the mechanism by which local authorities take estates in charge, and I am sure she does as the Minister of State with responsibility in this regard, will she admit it flies totally in the face of the policy and criteria which she directed local authority staff to use when devising the list?
The list was drawn up by the local authorities then transferred to the Department in accordance with-----
The criteria-----
-----the national housing survey guidelines. It is only estates in a serious problematic condition or which have parts in a serious problematic condition which are exempted in the legislation from the Department of Finance on the property tax in this category. There are other exemptions. As Deputy Cowen knows, an estate being taken in charge involves a totally different test.
Does the Minister of State agree with it?
The Deputy asked me my view on the taking in charge process. Thousands of estates throughout the country have not been taken in charge, and some have been in existence for 30 years. They were not part of the household survey upon which this exemption is based.
There are different standards for different schemes. That is fine. It explains it.
It is an entirely different system. Taking in charge is a serious issue and one we want to address with local authorities.
They do it regularly.
It is a different category from that of problematic conditions in an unfinished estate, which was the category laid down in the legislation by the Department of Finance. I am sure the Minister, Deputy Hogan, can answer for himself, but he tells me he did not say what the Deputy suggested he did with regard to the Meath East by-election. Deputy Cowen asked whether there should be a waiver system. This would be a matter for the Department of Finance, which established the property tax and brought forward the legislation to Cabinet for agreement by the Government.
I have a related question, and I would like to use this opportunity to ask the Minister of State to consider extending the period of time by which the forms must be returned by post. I believe the deadline is next week. Many queries and questions are emanating from members of the public to many representatives in the House and I ask the Minister of State to consider extending the deadline.
It is not a matter for me. It is a matter for the Department of Finance.
Will the Minister of State pass on our-----
I have heard the Deputy's request but I cannot give him an answer.
Will the Minister of State pass on my request?
We will pass on the Deputy's best wishes.
2. Deputy Brian Stanley asked the Minister for the Environment, Community and Local Government the number of unfinished estates; if he will provide a breakdown of the stage of completion that these are at; the estates that are categorised as unfinished; the timeframe for completion of outstanding work in those estates classified as unfinished estates; and if he will make extra funding available to local authorities to assist in their management of those estates. [20640/13]
Amharc ar fhreagraI am chairing the national co-ordination committee on unfinished housing developments to oversee implementation of the report of the advisory group on unfinished housing developments, together with the Government’s response to the recommendations. The committee includes representatives from the Irish Banking Federation, local authorities, Housing and Sustainable Communities Limited, NAMA and the construction sector. Real progress is being made with regard to the public safety works required to improve the living conditions of existing residents on some unfinished estates, and the committee meets regularly to oversee this effort.
The 2012 national housing development survey, published by the Department in November 2012, revealed steady quantifiable progress in tackling the issue of unfinished housing developments. A renewed focus by all stakeholders, including local authorities, developers, lenders and local residents, is working and communities are benefitting. Since the survey was first commenced in 2010, there has been a 37% decrease in the number of unfinished developments and a 27% decrease in the number of vacant units. In 2012, almost 300 housing developments were resolved. Further details of this survey, including details of the stage of completion of unfinished developments throughout the country, can be found on the Department’s website, www.environ.ie. The survey identified a further 1,770 developments remaining unfinished. While this is a substantial reduction on the 2,874 developments identified in the 2010 survey, it also indicates the scale of the challenge remaining. The focus of the Government’s actions is directed at resolving these developments, of which approximately 1,100 are in a seriously problematic condition.
The Department launched a public safety initiative in March 2011, which provided funding to address immediate public safety issues. The types of works approved to date under the public safety initiative include fencing off unsecured and hazardous areas, capping pipes, installing street lighting and other works to secure sites. Under the public safety initiative, the Department has made allocations totalling approximately €3.877 million to 21 local authorities from the funding made available, and to date a total of €2.515 million has been drawn down by local authorities.
I thank the Minister of State for her reply. She mentioned the progress. A report was done in June 2011 and I admit the Government inherited a difficult situation with regard to unfinished estates dotted throughout the country, including in my county of Laois which has 70 unfinished estates. I have also studied the progress report published in July 2012. I am anxious to find out where we are today with regard to these matters. The 2011 report found 23,250 complete but vacant houses and another 9,976 almost complete but vacant houses. This is a total of more than 33,000 houses in 1,655 developments with works outstanding in categories 2, 3 and 4. At the time, the NAMA share was listed in the report as 3,200 homes possibly available for social housing use.
Two years on, however, how many of those 3,200 houses have been brought into use?
The report mentioned site resolution plans for the 1,650 estates, but how many of those are in place for category three and category four estates? Some 636 estates were subject to legal enforcement last June, 44 of which were in County Laois. There were three in Offaly and seven in Kildare.
I am sorry Deputy but we are running out time.
I am seeking answers to those specific questions. Does the Minister agree on the need for legislation? We have 33,000 empty houses in unfinished estates, while 100,000 family units are on the housing waiting list. Can we not put legislation in place to make a match between them? There is a precedent with the Land Commission whereby unused land was bought by the State and leased out to people who eventually bought out the holdings. Thus a match was made between those who needed land and land that was unused or under-used.
In this case we have houses that are not being used, while we have an accommodation crisis. Does the Minister agree that due to the slow progress, legislation is required to use such accommodation for social and affordable housing?
I am not sure we need legislation, but we need action which is what we are doing on the committee. To answer the Deputy's question, NAMA issued some information yesterday. There are 110 houses on which contracts have been agreed with regard to NAMA units. A special purpose vehicle has been established which is speeding up the process. We hope we will get about 500 over the line this year but that will depend on how fast the process can be moved. The special purpose vehicle is a means whereby NAMA can gather units that are deemed suitable by local authorities into this financial vehicle, so that they will then be available for the local authorities and voluntary housing sectors to take them over. We are therefore expecting progress. I would like to see it happening faster because it has been very slow, particularly in the early stages. However, we are getting some traction now, which is to be welcomed.
With regard to site resolution plans, the intention is that by the next meeting of the unfinished housing developments committee we will have such plans in place for nearly all the estates. We will then be at a point where we can make a decision on the future of estates where nobody is living and where, in some cases, houses are only half built. We will have a plan in place to finish the others, be they under receivers, NAMA, local authorities or private ownership. The intention is to move this process on as quickly as possible. We have made quite good progress in the last year.
We must move on to Question No. 3.
May I ask a supplementary question?
No. I am sorry but we are out of time. I am calling Question No. 3 in the name of Deputy Joan Collins. There are only four minutes after the first question, giving a total of six minutes. Therefore the longer a Deputy takes for a supplementary the less time is left.
3. Deputy Joan Collins asked the Minister for the Environment, Community and Local Government if he will amend the Housing Act 2009 to resolve the problems which are affecting people who availed of the shared ownership scheme. [20639/13]
Amharc ar fhreagraThe Government’s 2011 housing policy statement announced the standing down of all affordable housing schemes, including the shared ownership scheme, in the context of a full review of Part V of the Planning and Development Act 2000. That review is now almost concluded and I have also asked the Housing and Sustainable Communities Agency to provide me with a stand-alone analysis of the shared ownership scheme, including identification of the main difficulties and recommendations for mitigating measures. Any future changes to legislation governing affordable housing schemes, including the shared ownership scheme, will be made in the context of both pieces of work and I expect to make announcements in this regard in the near future.
It is relevant to note that the purchasers were in the position of having their share of the property rise in value when the market was rising. It should also be borne in mind that local authorities have drawn down loans on the rental equity portion with a view to facilitating the ownership of the property incrementally for the occupier. Every effort is made by housing authorities to assist borrowers who encounter difficulties in meeting their commitments. For example, article 10 of the Housing Regulations 1980 (Amendment) Regulations 1996 provides that, in cases of hardship, the loan repayment period may be extended and arrears capitalised so as to make repayments more manageable for the borrower.
Mortgage interest supplement under the supplementary welfare scheme, administered by the Department of Social Protection, is payable, subject to the qualifying conditions of that scheme, in respect of mortgages under shared ownership transactions, in the same way as in the case of mortgages generally. An annual subsidy towards rent payments under the shared ownership scheme is available, through the rental subsidy scheme, to households with a gross household income of up to €28,000 per annum in the preceding tax year. The level of subsidy ranges between €2,550 for incomes up to €13,000 and €1,050 for incomes up to €28,000.
I thank the Minister of State for her reply. She must be very much aware of the situation in which people find themselves in shared ownership. I wish to raise the matter concerning the Housing Act 2009. Without going into detail, in our area a particular person had a shared ownership crisis. She discussed it with the local council which agreed to take back the house and said that she would pay off the outstanding loan over 50 years at €200 per instalment. It would then put her on a voluntary housing list, although some people cannot get onto the list because they voluntarily gave up their home.
I was surprised that the Minister of State mentioned the mortgage interest supplement because people are not aware of it. We can take up that matter. The only way this can be dealt with is if the pressure is taken off local authorities in paying back the loan taken out by the Housing Finance Agency. Councils have to pay that money back and there are no insolvency arrangements. It must be taken in that context and there have to be opportunities for people to park their mortgages as part of an insolvency arrangement. I would like to hear the Minister of State's comments on that matter.
I am aware that a number of Deputies have a big interest in this issue. That is why we are having this review which has nearly been concluded. Part of it concerns the fact that local authorities have taken on the financial burden and so we must find a way of addressing that problem. It has to work both for those in shared ownership and the local authorities.
We should spread the word more widely that the mortgage interest supplement is available to people on shared ownership schemes. As the Deputy said, I do not think it is widely known.
Does the review include examining the Housing Act 2009 because it does impact on that? There has to be a change at Government level to take pressure off local authorities which are being forced to pay back loans taken out under the Housing Finance Act.
I have not prescribed what the review will examine. I will see it fairly shortly, as far as I know. There are a number of amending pieces of housing legislation coming down the track. Therefore, if we do need to amend legislation, we will have the facility to do so under the housing legislation we are currently working on. At this stage, however, I do not know if that will form part of the recommendations or not.
4. Deputy Éamon Ó Cuív asked the Minister for the Environment, Community and Local Government the total amount of money provided for projects in the Leader programme 2007 - 2013 broken down by measures; the amount sanctioned in each measure to date; the amount that remains to be sanctioned; the latest date for sanctioning projects; the total spend to date on projects in the programme; and if he will make a statement on the matter. [20597/13]
Amharc ar fhreagraMy Department recently completed a full and comprehensive review of commitments under the axes 3 and 4, Leader elements, of the Rural Development Programme 2007-13. Project approvals were suspended during this time. However, on 24 April, as a result of this review, I was able to release the remaining €90 million funding for the Leader elements of the rural development programme.
As a first step, I have allowed the issuing of contracts for approximately €42 million worth of projects that have all the necessary approvals in place. The local development companies contracted to deliver the Leader elements of the programme have two weeks to notify the Department as to whether all of the projects considered within this €42 million are ready to proceed. Once this exercise is complete my Department will then be in a position to establish how much of the €90 million is remaining and will notify each local development company of its allocation for the remainder of the programme. To date, over €214 million has been committed by the LDCs under the programme with €123 million of this paid and €91 million in outstanding commitments. The measures with the highest commitments are basic services for the economy and rural population with €48 million, village renewal and development with €39 million, encouragement of tourism activities with €33 million and support for business creation and development with €31 million.
Once the LDCs are notified of their final allocation the Department will request a revised financial plan from each LDC, which will detail how their overall allocation is apportioned under the various measures. The national allocation per measure will be based on these returns.
In the context of EU regulatory requirements, project commitments under the Leader elements of the RDP must be approved by the end of 2013, but a further two years are permitted to complete the projects and register the expenditure.
|
RDP Measure |
Committed |
Paid to Date |
Outstanding Commitments |
|
Axis 1 |
|
|
|
|
Adding Value to agricultural & Forestry |
€652,491.76 |
€89,554.07 |
€562,937.69 |
|
Axis 3 |
|
|
|
|
Diversification into Non Agricultural Activities |
€8,737,999.06 |
€4,649,297.91 |
€4,088,701.15 |
|
Support for Business creation and Development |
€31,403,610.85 |
€16,448,988.11 |
€14,954,622.74 |
|
Encouragement of Tourism Activities |
€33,069,048.76 |
€18,958,837.08 |
€14,110,211.68 |
|
Basic Services for the economy and rural population |
€48,819,325.40 |
€31,983,717.29 |
€16,835,608.11 |
|
Village renewal and development |
€39,976,287.81 |
€21,977,607.18 |
€17,998,680.63 |
|
Conservation and upgrading of the rural Heritage |
€21,615,785.43 |
€12,922,866.00 |
€8,692,919.43 |
|
Training and Information |
€17,460,239.27 |
€10,578,294.23 |
€6,881,945.04 |
|
Skills acquisition and animation |
€7,805,809.38 |
€3,435,325.63 |
€4,370,483.75 |
|
Co-operation |
€5,006,575.90 |
€2,176,448.89 |
€2,830,127.01 |
|
Total Axis 3 |
€213,894,681.86 |
€123,131,382.32 |
€90,763,299.54 |
|
Total Axes 1 & 3 |
€214,547,173.62 |
€123,220,936.39 |
€91,326,237.23 |
I thank the Minister for that information. However, about six weeks ago during parliamentary questions, he did say that we would have the information in ten days since the companies would be allowed to give approvals.
Will the Minister explain why this did not happen and why it has taken six weeks to come half way? Each company will put in a revised financial plan. Is there any limitation on the Department in respect of swapping money between subheads or is it at the discretion of the Department that if one subhead has a heavy expenditure and another has less expenditure to swap the money around between the subheads?
Deputy Ó Cuív is correct that it took longer than anticipated. I am sorry it took so long but we are there now and we have got a comprehensive report from the division in the Department to ensure we have a clear picture of what can be spent under the various axes and the remaining funds in the programme. We have to get approval from the managing authority, in this case the Department of Agriculture, Food and the Marine and the European Commission about changing money from one axis to another. We did that successfully last year. Therefore it is possible to do it. Certainly there is more interest in some of the measures than others, as the Deputy will be aware from his constituency. There is particular pressure on the basic services measure and on the tourism measures which appear to be the most attractive for people in communities seeking to have projects approved. We are conscious of the need to be flexible so far as we can within the guidelines of the Commission and with the approval of the Commission to move money around.
I would not have thought there would be a need to move it between the axes. If memory services me correctly, axis 3 is the project money and axis 4 is the administration money. I presume the administration money will be used for administration which means there will not be much swapping. However, what is required is swapping between the measures. I presume the Department of Agriculture, Food and the Marine will do whatever is necessary. Does the Minister foresee any difficulty with the Commission in swapping money between the measures and reformulating between the measures? When we agreed the process at the beginning I was told there would not be any difficulty in swapping the money within the measures, once it was kept within the correct axis. Perhaps the Minister would confirm if that is still the case. The Minister said a comprehensive analysis was carried out. On the last day I recall the Minister saying that €100 million remained to be allocated, whereas today he said it was €90 million. The difference is not hugely significant, considering that no project was passed in February and March with only a small number in April. Is it possible to give permission for small projects with clear time constraints? For example, festivals, assisted by the Leader programme, which are due to take place in the summer, will not significantly change the arithmetic. Would it be possible to give permission for these events well in advance as it is difficult to plan without knowing whether one will get Leader funding?
I am glad to inform Deputy Ó Cuív that the festival money was approved last week and all the various festivals that would have applied for funding would have received their notification in the past ten days.
I am aware of a festival which is to take place in July and it has been told by the Leader company that it cannot approve it as it is not on the list.
If it was not on the list before the allotted time, perhaps it was not approved. If the Deputy supplies me with the details I will certainly try to assist.
I thank the Minister.
I have put resources into the section in order to speed up the approval process for projects. I am conscious that there is a time limit on these projects. There is often a misunderstanding about the number of large projects in the system. There are only 39 nationally in the system. I can assure the Deputy that I will do everything possible to release money as quickly as possible for the benefit of the projects. In line with precedent for moving money from one axis to the other, which we secured about a year ago, when the basic service measure needed more money we were able to get agreement from the Commission on that issue. I hope for the same flexibility in the future if the demand arises.
The Minister has deep pockets. Will those over €150,000 be paid now?
Some 39 of them will be paid now.
Very quickly.
Yes, once everything is in order, from the next couple of weeks.
I thank the Minister.
5. Deputy Thomas Pringle asked the Minister for the Environment, Community and Local Government the way he sees Ireland benefiting from the green economy and climate change opportunities; the way the carbon tax will assist this; and if he will make a statement on the matter. [20695/13]
Amharc ar fhreagraThe Government’s ambition for growth and job creation in the green economy, as well as a range of associated actions, are set out in the policy statement on Delivering our Green Potential which was published by my colleague the Minister for Jobs, Enterprise and Innovation in November 2012. Publication of the statement followed on from a commitment under the Action Plan for Jobs 2012 and must also be seen in the context of the Government’s new sustainable development framework, Our Sustainable Future, published in June 2012. It is estimated that well over 10,000 extra jobs could be created in the green economy sector over the next number of years.
A key element of the context for the emerging global green economy is the gradual emergence of new technologies and practices that are responding to the threat of climate change and the need for a significantly more efficient approach to using natural resources.
In meeting our international climate commitments, greenhouse gas mitigation policy in the EU is being developed around early and cost-effective transition to a competitive low-carbon economy in 2050. In Ireland, policy is being developed on an equally progressive approach, as borne out both by the outline heads of the climate action and low-carbon development Bill and the ambitious policy initiative on sectoral mitigation roadmapping for 2050 which I announced recently. Our commitment to environmental sustainability, including climate protection, will be fundamental to our success in shaping and engaging competitively in the emerging global green economy.
The carbon tax is one of the key policy responses to support the transition to a low carbon economy. Responsibility for the carbon tax rests with my colleague, the Minister for Finance.
I thank the Minister for his response. On the day the carbon tax comes into play and many low income households see significant price increases in fuel to heat their homes, it may have been some consolation for them if the revenue generated from the carbon tax was used to develop alternative green energies that could possibly provide them with carbon neutral energies for home heating. That the carbon tax is going into the central Exchequer and there is no ring-fencing for the development of the green economy is a retrograde step that needs to be reversed. We should be looking to develop green energy with biomass for home heating and converting large parts of the country to that which is carbon neutral, contributes to the green economy and also would provide people with a carbon neutral and carbon tax free heating source for their houses. The Minister should focus on that and ring-fence the carbon tax for those developments but unfortunately the carbon tax is going into the Exchequer and there will be no benefit in terms of developing the green economy.
In terms of the overall taxation policy, the Government will want to ensure it can limit taxation increases on labour. If there are environmental taxes that can be deployed for the purpose of ensuring we do not increase tax on labour and work, that is a noble aspiration and a reality to date during this Government's term of office, however, it is not true to say that no money goes into matters relating to the climate change agenda to which the Deputy referred. Some €35 million has been allocated for an energy efficiency fund and €9 million has been allocated for research and development in the Department of Jobs, Enterprise and Innovation in respect of new technologies along the lines mentioned by the Deputy. While initiatives have been taken, I agree we could do more. We are working on proposals on the energy efficiency side and on home improvements that may assist some of the measures advocated by the Deputy between now and the end of the year. I am conscious that people will respond to some of the initiatives being taken, whether it is grant assistance or they may be in a position to benefit from lower energy costs in their homes arising from better insulation or better energy efficiency standards. The carbon tax is a tax for the purposes of the Central Fund but the Government is equally conscious of the need to meet our climate change objectives on the energy side. We will continue to invest some of that money in the context of the proposals I have mentioned.
As Minister for the Environment, Community and Local Government it would have been important that the carbon tax be ring-fenced. The carbon tax is a revenue generating vehicle rather than for the purpose of dealing with climate change or moving to carbon neutral technologies. A great deal more investment is needed in the area and the Government should move quickly to ensure we change over and become carbon neutral. It appears from his response that the Government has a vested interest because the more carbon neutral home heating is provided the less is generated in carbon tax.
The Minister will not cut off his own source of revenue but that is the sad situation many home owners are facing.
I do not agree with the Deputy in any way in regard to his last assertion. More has been done in the past year and a half in developing our green economy potential than happened under my predecessors. We have now set out a road map as to how jobs can be created in the green economy and how we can reduce the costs of business in terms of energy efficiency. There was a €4 million investment by 24 companies in recent times which received a return of €3.5 million during the course of a year in energy efficiency savings and water conservation savings made. Those are examples of pilot schemes we have been carrying out around the country and are a clear indication that people want to engage in both the green economy and the energy efficiency agenda. Each Minister must draw up a sectoral plan in regard to how they can meet our climate change objectives and targets by the end of this year and I am sure that will spark off new initiatives they will have to take in order to meet those objectives.
